Are you Nearing Retirement?

It’s very important to ensure that your assets are on target to generate the income you’ll need to cover your expenses and achieve your goals in retirement.

In our disciplined approach, we assist you in visualizing, and understanding, how your income sources and retirement assets will fund your needs and wants in retirement. Key considerations we will evaluate include:

• What are the basics you need during retirement?
• What do you want to enjoy during retirement?
• What income sources are available to pay for expenses during retirement?
• What retirement assets do you have, or might have down the road, to fund your retirement?

Watch the video below for an introduction to the key components of our approach to helping you evaluate retirement. At the end of the video, take advantage of options to learn more, such as exploring the elements of your retirement picture, or taking a financial inventory.

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Contact us to take an important first step in your retirement income planning process.

First, make sure your retirement team is in place, starting with your financial advisor. Depending on your situation, we may also act as your team’s “quarterback,” coordinating and working with family members, your CPA, an estate attorney, and insurance and trust professionals. Next, establish your priorities. We can assist you in understanding factors that will impact your retirement plan, such as your retirement lifestyle, risk tolerance, retirement date, unknown risks and your desire to support your family members or a favorite charity. You must also have a thorough understanding of your situation. We can assist in putting your retirement into perspective by taking a financial inventory, which includes identifying your income sources and assets and distinguishing between your needs and wants.

Legacy Planning You may want to fund a comfortable retirement, while still allocating funds to leave an inheritance for family or donate to a charity. But your first priority should be to ensure your expenses can be met before you leave a monetary legacy behind. We can assist with estate and legacy planning, including helping to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation. We can also help select effective vehicles to implement your plans.

Contact us to help you develop a retirement plan.

Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.

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By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better your chance your assets can generate income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.

You may need to adjust your rate of withdrawal based on future market performance. The sustainable rate of withdrawal is historical and will fluctuate. If your rate of withdrawal is greater than the growth of your assets, you may exhaust your principal.

  It’s important to know how you’ll finance your needs and wants in retirement.

Contact us to take an important first step in your retirement income planning process.

Social Security benefits are another important aspect of your retirement plan. A variety of factors, such as your age, spouse’s earnings and other sources of income, can affect when you may need to begin receiving your benefits. Contact us to gain the insight you need to help determine the most appropriate course for you.

Most Americans consider Social Security benefits to be a significant source of reliable income in retirement. Deciding how and when to start drawing benefits will have a significant impact on your income, and thus your lifestyle in retirement, so it’s especially important to understand the options available to you.

The decision around when to begin taking Social Security is a key factor – but there are other important factors to consider:

• Your health and life expectancy
• Your spouse’s or ex-spouse’s benefit
• Whether or not you plan to work after age 62
• Your taxable income or other income sources in retirement

Learn more about Social Security decision factors.

Contact us to take the first step toward understanding when and how to apply for benefits.

Regardless of your age or your financial situation, every investment decision entails some sort of risk. We will work with you to identify the factors and risks most relevant to your situation and plan for them, including:

Longevity

Longer life expectancy means your assets have to last longer. You have to consider the possibility of living 20 or 30 years after you retire.

Inflation

For example, health insurance premiums and prescription costs are rapidly increasing. If you are retired, this would increase your cost of living, erode the value of your savings and reduce your purchasing power.

Spending and Withdrawals

Overspending, living beyond your means or withdrawing more than the recommended percentage from your retirement funds can adversely affect how long your assets last.

Market Risks

Market declines and the timing of these declines pose risks. How and where your assets are allocated across different asset classes plays a key role in managing this risk.

Unknown Risks

Major health events, disability, long-term care needs and other unexpected occurrences can complicate a retirement plan.

Contact us for more information on how we’ll work together to help address these risks by applying a comprehensive process to plan your retirement.

It’s never too early to start thinking and planning for retirement, especially when it comes to major expenses like healthcare. For one thing, Americans are living longer. Yes, increased longevity is wonderful, but it also comes with a greater risk of experiencing changes in health, which could mean greater expenses as healthcare costs rise. The fact is, even with insurance and Medicare, out-of-pocket healthcare costs in retirement can be expensive, with the potential to derail even the best-laid plans. Understanding potential costs, evaluating your options and developing a comprehensive plan that accounts for those expenses can help you achieve a secure, comfortable retirement.

Costs to take into consideration:

• Medicare premiums, deductibles and copays
• Supplemental coverage costs
• Prescription copays
• Hearing, dental and vision costs
• Long-term care insurance
• Other out-of-pocket expenses

To learn more read a white paper about how healthcare costs could affect your overall retirement income plan.

Did you know?

Married couples age 65 and over spent $7,600 a year on average for Medicare premiums and copays. That figure includes insurance premiums for Medicare Part B coverage and Part D prescription benefits, plus out-of-pocket expenses for copays, deductibles and miscellaneous home care costs. However, that average doesn’t include any additional costs for treatment of chronic conditions such as heart disease, arthritis or diabetes; nor does it account for the cost of a nursing home or long-term care facility, which can be a major expense.

Source: Center for Retirement Research at Boston College, What is the Distribution of Lifetime Health Care Costs from Age 65? February 2010.

Contact us to help you plan for retirement.

If you’re a small business owner and haven’t already determined your exit strategy, don’t wait any longer. Among many other decisions, you’ll need to determine the most appropriate structure for divesting your business and tapping into the value it represents.

The checklist below shows some of the key options you could consider when thinking through this part of your planning:

• Sell it to a competitor
• Sell it to one or more key employees
• Keep it in the family

Positioning yourself to reap the benefits of the work, time and effort you’ve put into your business requires time, thought and skill. Feel free to contact us to discuss in more depth how these options may fit into your specific situation.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

Contact us to help you determine your exit strategy.